GoAir announces intention to sell stake

By TESTCustomwebLP TESTCustomwebLP
July 9, 2014 10:01

Indian LCC GoAir is in talks to sell a stake to a non-Indian airline to raise funds for its expansion plans. The airline joins other carriers seeking to take advantage of liberalized investment rules in India.

Giorgio De Roni, CEO of GoAir, said: “We are working on a strategic partnership with a foreign airline. We are open to giving equity. There is no deadline to take a decision and we are under no pressure.”

De Roni also said the management of GoAir will forward its recommendations to the airline’s owner, the Wadia Group, and that the airline has no plans for an IPO.

Airlines in India are joining forces with non-Indian carriers after the government relaxed regulations in 2012 to allow foreign airlines to own up to 49% stakes in Indian carriers.
GoAir intends to sell a stake in order to procure funds for new aircraft. The airline is set to take delivery of 72 A320neo from 2016 under a series of sale-and-leaseback deals.